Bengaluru: The Amazon-Flipkart duopoly in India’s online retail space will end soon with Tata and Reliance joining them at the top, US-based research and advisory firm Forrester has said in a report it shared with ET.
“The Amazon-Flipkart duopoly is fast becoming a four-way competition as Reliance Digital and Tata join the fray,” said the report, ‘The State of Online Retail in India’. “We estimate that Flipkart , Reliance, Amazon , and Tata (FRAT) collectively own more than 80% of India’s online retail market, and each is manoeuvring to gain market share.”
While Tata Group is working on a super app to take its ecommerce play to the next level and has acquired platforms like Bigbasket and 1mg, Reliance is building its ecommerce platform called Jiomart and has made several acquisitions, including quick commerce platform, Dunzo in January this year.
ET reported on March 16 that Tata is seeking clearance from National Payments Corporation of India (NPCI) to start operating on the Unified Payments Interface (UPI) as a third-party payments service provider offering digital payments services. ET had also reported on March 11th that Tata Digital, the tech arm of the conglomerate, is seeking more funds from the parent company, Tata Sons, for expansion.
The Forrester report said India’s overall retail growth slowed for the first time after several years of double-digit increases in FY21when gross domestic product (GDP) shrunk 7.3% amid the pandemic and lockdowns. But online retail grew 5%, adding $1.6 billion in sales.
It expects the Indian online market to get back on a faster growth track with the market expanding around 20% every year to reach $85 billion by 2025.
Forrester estimates the 2021 online retail market size to be $41 billion, growing $7 billion year on year, and that it will reach $50 billion in 2022 and $60 billion in […]
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